Records do not detail the settlement terms and lawyers for both sides did not return phone messages this morning seeking comment. Diocese spokesman Matt Kerr declined to comment.

The sides reached the settlement in mid-December, records say.

Omayma Arafa, an Egyptian Muslim, worked for the diocese from October 2007 until January 2009 when she was fired because her supervisor, Monsignor Edward Zemanik, the pastor of St. Anthony of Padua Catholic Church in Easton at the time, "had a cold, distant and hostile attitude" toward her, records say. Zemanik was transferred to another parish in June 2011.

Arafa, who formerly worked in the circulation department of The Express-Times, claimed that Zemanik made comments about her religious practices. She also made complaints about a volunteer, who harbored an "incredible disrespect" toward Arafa and said she "should not be there" because of her religion. Arafa claims nothing was done about the complaint.

In January 2009, Zemanik told Arafa that "things were going to change around here" and all of the diocesan employees were brought in to meet with managers. When Arafa met with her managers, including Zemanik, she was fired.

The diocese told her that it could not afford to employ her and was going to hire an outside agency for bookkeeping. Arafa's job was eventually taken over by a non-Muslim male employee, according to the suit.

The diocese wrote in a court filing that Zemanik was asking questions of Arafa's religious practices to be sensitive to them. The filing also says the decision to fire Arafa was based on job performance and because it was not cost-effective to keep her.